A possible moratorium prohibiting the recovery of defaulted collateral for Federal employees and contractors may be in the works very soon. US Senator Brian Schatz (D-Hawaii) just last week, cosponsored S.24 – Government Employee Fair Treatment Act of 2019 which, in summary, reads:

This bill requires employees of the federal government or a District of Columbia public employer who are furloughed or required to work during a lapse in appropriations beginning on or after December 22, 2018, to be compensated for the period of the lapse. The employees must be compensated on the earliest date possible after the lapse ends, regardless of scheduled pay dates. Employees required to work during the lapse in appropriations may use leave.

In furtherance of his stance on support for Federal employees, Sen. Schatz just recently tweeted the following:

The roughly 800,000 government employees who are either furloughed or working without pay will be forced to start slashing their consumer spending when paychecks don’t appear this week. Will a hold be coming soon for the collateral recovery industry? With some of the recent moratorium reasons that we all saw in 2018, it’s a very real possibility.